Higher Copper Price in Japan

Nippon Mining & Metals announced on Friday the firm increases the official copper ingot price by 30,000 yen to 740,000 yen per tonne for February shipment. The price recovered the level on February 1 through additional hike just after February 13. The averaged monthly price increased to 724,700 yen. Japanese copper smelters’ breakeven point with imported ore is estimated to be just more than 747,000 yen per tonne including 74,000 yen of premium and charges based on New York kerb on Thursday, which represented US$ 5,841 per tonne in cash price at London Metal Exchange. The price is 700 yen higher than the new official price and Japanese smelters could increase the official price again. Mitsui Mining & Smelting announced on Friday the firm increases the official zinc ingot price by 28,000 yen to 448,000 yen per tonne for February shipment. The price rebounded to 2-week high level. The averaged price reached 439,600 yen. The higher copper ingot price lifted the copper scrap market price by 20-25 yen per kilogram around Tokyo. Rolled copper distributors around Tokyo welcomed the hike due to positive pressure for rolled copper products. The distributors will increase the selling price of brass bar by 20-40 yen per kg after they reduced the price under lower official copper ingot price. The higher copper ingot price could support other processed copper products. Electric copper spot price for construction market is stable with the higher copper ingot price. The distributors, which have still inventory based on more than 800,000 yen of copper ingot price, lose much money with 690,000 yen per tonne of electric wire selling price.